Workers compensation is a type of insurance that covers employment-related injuries and illnesses. Requirement for this type of insurance may vary from state to state. However, business owners should familiarize themselves with this type of policy. It is possible that you may need to purchase workers compensation insurance for your business. To learn more about this type of insurance and the coverage it can provide for your employees, keep reading below.
What Does Workers Compensation Do?
The first thing business owners need to know when it comes to workers compensation is its function within the business. Essentially, workers compensation provides employees who have been injured on the job with the necessary funds and benefits to recover. Even if you already offer great health insurance for small business, this includes medical expenses, vocational rehabilitation and wage replacement, among other things. As a business owner, you should have a clear idea of what different workers comp policies should offer so that you can pick the best one for your business.
Do All Employees Need To Be Covered?
While it is governed from state to state, workers compensation insurance is generally not required for all employees. Instead, specific types of employees, such as seasonal or casual workers, will be specifically exempt. However, you may find that uninsured independent contractors do fall under your care. This is why it is important to check the specific regulations in your state. Make sure that you understand the many types of employees who may fall under your insurance plan.
What Types Of Benefits Does It Provide?
Among medical expenses and wage replacement, workers compensation also offers other benefits to injured employees. This is reliant upon the type of plan you choose, but additional benefits often include disability coverage, cost for retraining and family benefits in the event of death. The goal of workers compensation is to provide employees or their families with the funds necessary to recover from an injury as well as enough to cover potential financial losses.
How Much Does This Insurance Cost?
Many business owners are concerned with how workers compensation will effect the cost of their insurance. Fortunately, there are several different insurance policies to choose from. However, it is important to keep in mind that the cost can not always be reduced significantly regardless of your workplace health and safety efforts. The type of industry you are in, as well as your number of covered employees will play a large part in your insurance premium. Still, it is important to shop around so that you can find the best possible price.
How Does It Help Protect My Business?
Finally, many business owners are concerned with how workers compensation insurance can help protect their business. Once your employees are covered, you should look to your plan to see how it can help you. For example, this type of policy can prevent employees from suing you for their injury. Keep this in mind when you are looking for a workers comp policy.
If you own a business, it is important that you understand the role workers compensation may play in your insurance policy. By familiarizing yourself with this type of insurance, you can determine what employees will need coverage and if you will need help paying bills. Keep this information in mind the next time you are searching for workers compensation insurance for your business.
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